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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Fair Value Measurements of Investments and Foreign Currency Forward Contracts, by Major Class According to the Fair Value Hierarchy

The following tables present fair value measurements of investments and foreign currency forward contracts, by major class according to the fair value hierarchy:


	Fair Value Measurements
September 30, 2024	Level 1		Level 2		Level 3		Total
Assets, at fair value:
Senior secured loans	$	—	$	—	$	3,151,328	$	3,151,328
Unitranche secured loans	—		—		168,208		168,208
Junior secured loans	—		—		160,750		160,750
Equity securities	1,975		—		179,768		181,743
Total assets, at fair value:	$	1,975	$	—	$	3,660,054	$	3,662,029
Liabilities, at fair value:
Foreign currency forward contracts asset (liability)	—		(3,192)		—		(3,192)


	Fair Value Measurements
December 31, 2023	Level 1		Level 2		Level 3		Total
Assets, at fair value:
Senior secured loans	$	—	$	—	$	2,171,243	$	2,171,243
Unitranche secured loans	—		—		184,853		184,853
Junior secured loans	—		—		87,986		87,986
Equity securities	23		—		84,062		84,085
Total investments	$	23	$	—	$	2,528,144	$	2,528,167
Liabilities, at fair value:
Foreign currency forward contracts asset (liability)	$	—	$	(3,087)	$	—	$	(3,087)

Schedule of Reconciliation of the Beginning and Ending Balances for Investments at Fair Value that Use Level 3 Inputs

The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and nine months ended September 30, 2024:


	Investments
	Senior secured loans		Unitranche secured loans		Junior secured loans		Equity securities		Total investments
Balance as of June 30, 2024	$	2,906,171	$	168,253	$	154,998	$	157,553	$	3,386,975
Net realized gain (loss) on investments	342		—		—		153		495
Net change in unrealized gain (loss) on investments	(713)		2,486		2,550		5,970		10,293
Purchases of investments and other adjustments to cost (1)	422,547		3,425		3,037		13,457		442,466
Proceeds from principal payments and sales of investments (2)	(173,211)		(5,956)		(240)		(768)		(180,175)
Reclassifications (3)	(3,808)		—		405		3,403		—
Balance as of September 30, 2024	$	3,151,328	$	168,208	$	160,750	$	179,768	$	3,660,054


	Investments
	Senior secured loans		Unitranche secured loans		Junior secured loans		Equity securities		Total investments
Balance as of December 31, 2023	$	2,171,243	$	184,853	$	87,986	$	84,062	$	2,528,144
Net realized gain (loss) on investments	563		—		—		156		719
Net change in unrealized gain (loss) on investments	10,102		2,560		(873)		3,716		15,505
Purchases of investments and other adjustments to cost (1)	1,371,221		7,098		65,204		72,681		1,516,204
Proceeds from principal payments and sales of investments (2)	(372,092)		(26,303)		(587)		(1,403)		(400,385)
Reclassifications (3)	(29,709)		—		9,020		20,689		—
Transfers in (out) of Level 3 (4)	—		—		—		(133)		(133)
Balance as of September 30, 2024	$	3,151,328	$	168,208	$	160,750	$	179,768	$	3,660,054

_________________________________________

(1)Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.

(2)Represents net proceeds from investments sold and principal paydowns received.

(3)Represents non-cash reclassification of investment type due to a restructuring.

(4)Represents non-cash transfers between fair value categories.

The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and nine months ended September 30, 2023:


	Investments
	Senior secured loans		Unitranche secured loans		Junior secured loans		Equity securities		Total investments
Balance as of June 30, 2023	$	1,529,436	$	129,399	$	44,190	$	61,717	$	1,764,742
Net realized gain (loss) on investments	38		—		—		—		38
Net change in unrealized gain (loss) on investments	(1,481)		180		(2,016)		657		(2,660)
Purchases of investments and other adjustments to cost (1)	228,395		1,289		2,662		3,177		235,523
Proceeds from principal payments and sales of investments (2)	(21,252)		(1,028)		(1,254)		—		(23,534)
Reclassifications (3)	(9,049)		—		7,939		1,110		—

Balance as of September 30, 2023	$	1,726,087	$	129,840	$	51,521	$	66,661	$	1,974,109


	Investments
	Senior secured loans		Unitranche secured loans		Junior secured loans		Equity securities		Total investments
Balance as of December 31, 2022	$	1,250,788	$	127,378	$	44,469	$	46,327	$	1,468,962
Net realized gain (loss) on investments	(1,571)		—		—		949		(622)
Net change in unrealized gain (loss) on investments	2,784		756		(3,020)		(1,381)		(861)
Purchases of investments and other adjustments to cost (1)	579,749		3,172		6,712		20,726		610,359
Proceeds from principal payments and sales of investments (2)	(94,538)		(1,466)		(6,655)		(1,070)		(103,729)
Reclassifications (3)	(11,125)		—		10,015		1,110		—

Balance as of September 30, 2023	$	1,726,087	$	129,840	$	51,521	$	66,661	$	1,974,109

_________________________________________

(1)Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.

(2)Represents net proceeds from investments sold and principal paydowns received.

(3)Represents non-cash reclassification of investment type due to a restructuring.

Schedule of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets

The following tables present quantitative information about the valuation techniques and significant unobservable inputs of the Company's Level 3 investments as of September 30, 2024 and December 31, 2023:


	Fair Value			Valuation Technique	Unobservable Input	Weighted Average Mean (1)		Range
								Minimum		Maximum
Assets:
Senior secured loans	$	2,013,789		Discounted cash flow	EBITDA multiples	11.0x		4.3x		31.1x
					Market yields	10.2	%	6.7	%	22.0	%
Senior secured loans	879,125			Discounted cash flow	Revenue multiples	7.4x		0.9x		18.0x
					Market yields	10.3	%	7.9	%	24.3	%
Senior secured loans	11,197			Enterprise value	Revenue multiples	0.5x		0.3x		1.9x
Senior secured loans	8,562			Enterprise value	EBITDA multiples	7.1x		7.0x		7.5x
Senior secured loans	6,353			Liquidation	Probability weighting of alternative outcomes	62.8	%	62.8	%	62.8	%
Unitranche secured loans	134,180			Discounted cash flow	EBITDA multiples	9.8x		6.3x		12.0x
					Market yields	12.7	%	8.5	%	20.0	%
Unitranche secured loans	34,028			Discounted cash flow	Revenue multiples	9.3x		6.3x		12.5x
					Market yields	12.2	%	11.5	%	13.0	%
Junior secured loans	120,361			Discounted cash flow	Market yields	13.1	%	10.9	%	18.6	%
Junior secured loans	6,585			Enterprise value	Revenue multiples	0.8x		0.3x		1.9x
Equity securities	117,488			Enterprise value	EBITDA multiples	11.4x		4.3x		21.5x
Equity securities	55,637			Enterprise value	Revenue multiples	3.8x		0.4x		11.8x
Equity securities	3,148			Option pricing model	Volatility	47.1	%	25.0	%	69.0	%
Total Level 3 Assets	$	3,390,453	(2)

_________________________________________

(1)The weighted average mean and weighted average range of unobservable inputs is based on the fair value of investments.

(2)Excludes investments of $269,601 at fair value where valuation (unadjusted) is obtained from a third-party pricing service or broker quote for which such disclosure is not required.


	Fair Value			Valuation Technique	Unobservable Input	Weighted Average Mean (1)		Range (Weighted Average)
								Minimum		Maximum
Assets:
Senior secured loans	$	1,351,324		Discounted cash flow	EBITDA multiples	11.1x		5.0x		22.2x
					Market yields	11.4	%	8.7	%	24.0	%
Senior secured loans	559,534			Discounted cash flow	Revenue multiples	7.2x		0.7x		19.5x
					Market yields	11.6	%	9.0	%	16.6	%
Senior secured loans	10,310			Enterprise value	EBITDA multiples	7.4x		5.3x		8.3x
Senior secured loans	9,618			Liquidation	Probability weighting of alternative outcomes	95.0	%	95.0	%	95.0	%
Senior secured loans	6,473			Enterprise value	Revenue multiples	0.6x		0.5x		1.6x
Unitranche secured loans	151,703			Discounted cash flow	EBITDA multiples	10.5x		7.3x		14.8x
					Market yields	15.0	%	8.6	%	24.6	%
Unitranche secured loans	33,150			Discounted cash flow	Revenue multiples	9.4x		6.0x		12.8x
					Market yields	12.3	%	11.9	%	12.7	%
Junior secured loans	70,881			Discounted cash flow	EBITDA multiples	13.5x		13.5x		13.5x
					Market yields	12.6	%	11.6	%	18.4	%
Junior secured loans	6,241			Enterprise value	Revenue multiples	1.6x		1.6x		1.6x
Junior secured loans	348			Discounted cash flow	Revenue multiples	0.9x		0.9x		0.9x
					Market yields	16.2	%	16.2	%	16.2	%
Equity securities	52,062			Enterprise value	EBITDA multiples	10.7x		6.3x		20.5x
Equity securities	29,920			Enterprise value	Revenue multiples	3.6x		0.5x		11.8x
Equity securities	1,487			Option pricing model	Volatility	59.6	%	35.0	%	74.0	%
Total Level 3 Assets	$	2,283,051	(2)

_________________________________________

(1)The weighted average mean and weighted average range of unobservable inputs is based on the fair value of investments.

(2)Excludes investments of $245,093 at fair value where valuation (unadjusted) is obtained from a third-party pricing service or broker quote for which such disclosure is not required.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the carrying values and fair values of the Company's debt as of September 30, 2024 and December 31, 2023:


	As of September 30, 2024				As of December 31, 2023
	Carrying Value(1)		Fair Value		Carrying Value(1)		Fair Value
Revolving Credit Facility(2)	$	251,319	$	251,319	$	253,579	$	253,579
SPV Credit Facility	308,380		308,380		178,098		178,098
SPV II Credit Facility	212,325		212,325		119,240		119,240
SPV III Credit Facility	58,624		58,624		—		—
SPV IV Credit Facility	145,800		145,800		—		—
2022 ABS	303,786		296,767		300,810		299,866
2023 ABS	184,377		186,629		183,840		187,345
2028 Notes	198,059		203,388		197,767		197,767
2029 Notes	202,268		202,268		—		—
Total Debt	$	1,864,938	$	1,865,500	$	1,233,334	$	1,235,895

_____________________________________________

(1)Represents the principal amount outstanding, less unamortized debt issuance costs.

(2)Amounts include borrowings denominated in foreign currencies converted at the period end exchange rate.

The below table presents fair value measurements of the Company’s debt obligations as of the following periods:


	September 30, 2024		December 31, 2023
Level 1	$	—	$	—
Level 2	—		—
Level 3	1,865,500		1,235,895
Total Debt	$	1,865,500	$	1,235,895

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details